Hydrogen (H2) is an essential component of today’s energy and industrial systems. Credit: Shutterstock.

By Adalberto Castañeda Vidal
NEW YORK, Feb 8 2023 (IPS)

Latin America has the potential to become the world’s dominant exporter of hydrocarbon. According to the IEA, Latin America could produce 25 percent of the 12 Million tons (Mt) of low-carbon hydrogen exports expected by 2030.

The region is definitely taking this opportunity seriously. Over the past years, 11 countries in the region have published national hydrogen strategies. While this is an excellent policy signal, it might not be enough to win the race against other regions.

For the region to realize its hydrogen exporting potential, I would argue that governments should move from broad national roadmaps to a more tailored and assertive hub development strategy.

This is because the first movers are going to be the ones securing the offtake contracts and attracting investments. Following are some considerations and proposals to promote low-hydrogen hubs across the region to turn Latin America into a hydrogen success story.

Hydrogen’s potential in Latin America

Hydrogen (H2) is an essential component of today’s energy and industrial systems. Around 90 million tons (Mt) of H2 are produced and used yearly from natural gas and coal, emitting 9-23 kg CO2/kg H2.

Chemicals, refineries, and steel production dominate today’s demand. Recent technological developments that allow the production of low-carbon hydrogen, position it as an alternative to decarbonize hard-to-abate sectors. In optimistic scenarios, hydrogen’s global demand can reach 115 Mt by 2030 and 528 Mt by 2050.

The two most prominent low-carbon hydrogen types are:

1. Green hydrogen, produced through water electrolysis paired with 100% renewable electricity, emits (0 CO2/kg H2).
2. Blue hydrogen, produced from fossil fuels combined with carbon capture and sequestration technologies (CCS), emits 1-3 kg CO2/ kg H2.

The global hydrogen generation market was valued at USD 129.85 billion in 2021 and is expected to expand at a compound annual growth rate of 6.4% from 2022 to 2030. New value chains will be needed to support this upscaling, including installing electrolyzer manufacturing plants in the region, which could create thousands of high-quality jobs.

Latin America has a competitive advantage in the global hydrogen race as it has one of the most abundant endowments of solar and wind resources which are key for the production of green hydrogen.

From 2014 to 2023, it was the most competitive region in terms of cost of production for both solar and wind. Furthermore, fossil fuel producers in the region can build on their existing knowledge and infrastructure to develop the value chains to capture and store CO2 from existing hydrogen production facilities.

Reasons for a hydrogen-hub strategy for Latin America

Some examples of planned hydrogen hubs already exist in Chile and Brazil. However, most hydrogen strategies in the region present broad national targets that lack demarcation and definition of particular incentives directed at the most strategic locations.

Latin America has a competitive advantage in the global hydrogen race as it has one of the most abundant endowments of solar and wind resources which are key for the production of green hydrogen

A hub is a specific geographic location with resources that provide a competitive advantage for developing the hydrogen supply chain. This pathway could facilitate cooperation between public and private stakeholders and community engagement. It also may provide increased visibility to attract first movers.

In this regard, hydrogen hubs are industrial areas with a competitive advantage in developing multiple projects for hydrogen production, distribution, utilization, and export. These hubs also have the presence of potential off-takers and existing infrastructure, which could be repurposed as the base for the hydrogen supply chain.

Hydrogen hubs can also be defined in opposition to its alternative, which is developing stand-alone individual projects. The lack of success of CCS projects over the past decade provide a good example of how stand-alone models face significant technical and commercial risks that can lead to inconsistent policy support and investments.

According to a study by the University of California, 80 percent of CCS projects ended in failure in the US. The projects failed due to a lack of off-takers, poor plant siting, and little support from local coalitions. These conditions impacted the project’s credibility of revenues and continued incentives support, which weakened their financial footing.

It is crucial to learn from these examples to mitigate such risks, considering particular vulnerabilities in Latin America that are hard to control, such as higher capital costs and exchange rate risks.

A hydrogen hub approach as a way to mitigate investments risks

While hydrogen’s potential is huge in the energy transition, as of the end of 2021, investments were still $863 billion short. This is when competition with other regions comes into play. Latin American economies must show more ambitious strategies to generate new opportunities and attract that capital. The key to facilitating the allocation of capital is to mitigate risks with strong market signals and the development of key infrastructure.

The benefits of a more focused hydrogen hubs promotion strategy can be divided into three parts: risk reductions, optimization of resource allocation, and securing policy and social support.

First, hubs can help mitigate market risks by building redundancy of supply and demand. This prevents risks associated with allocating production and demand to individual projects. Furthermore, it can help distribute technical risks among more players for the construction of key infrastructure projects, such as transmission lines, pipelines, and geological storage.

Second, according to experiences obtained from other clean energy projects, hubs are more efficient for optimizing planning and operation. Sole point-to-point projects run the risk of tailoring the technical decisions to the specific needs of one producer and one off-taker. However, with a hub approach, big market players cooperate and can involve smaller players, hence providing more opportunities to take advantage of economies of scale.

Lastly, stakeholders need to generate community acceptance and ensure the support of local authorities. Research from the Inter-American Development Bank found that of 200 conflict-affected infrastructure projects, 36 were canceled, 162 faced delays, and 116 faced cost overruns.

Therefore, community engagement cannot be regarded as a secondary requirement. A transparent hub proposal regarding its benefits, costs, and transition plans for communities and workers could help garner local support and, therefore, ensure consistent policy and social backing.

While clean hydrogen hubs can help reduce risks, optimize resource allocation, and garner local support, key decisions must be made by several actors with different goals. This creates a risk of delaying the projects or failing to reach agreements to get to final investment decisions. In this regard, it is important to consider lessons learned from failures and successes in other regions.

For instance, Europe is at the forefront of clean hydrogen development with a top-down and stakeholder-based approach. Lessons on the role of both national and local authorities in the pioneer hubs in Teesside and Rotterdam need to be taken into consideration.

On the other hand, while the US started following the source-to-sink model for CCUS, in 2021, it experienced a shift towards developing hydrogen hubs, which were revitalized with the recently approved Inflation Reduction Act.

Lessons from Chile’s hydrogen hub experience

In Latin America, Chile provides an excellent example of how to map and market hydrogen hubs at a global scale. In 2020, the Ministry of Energy published its National Green Hydrogen Strategy, outlining national priorities and targets. While the national strategy provided insights for three regions, in 2022, the government published a new report that identified two potential hydrogen hubs in Antofagasta (Atacama desert) and Magallanes. Both regions have well-defined projects and are working to attract investments and secure long-term offtake contracts with international partners.

To reproduce this strategy, the first hypothesis governments need to prove is the availability of natural resources, renewable resources for the development of green hydrogen or suitable geological storage, for blue hydrogen. The regions must ideally have the presence of relevant industries with experience in similar sectors, such as natural gas producers or renewable developers, as well as potential off-takers.

Then the government needs to devise a plan for incentives, such as tax deductions, accelerated depreciation, and customs exemptions, among others. On top of that, policy accelerators need to be implemented to allow faster deployment of technology, such as specialized land tenders and fast-track licensing and permitting.

Companies with international experience can work closely with local governments and federal agencies to ensure regulations do not hinder projects’ development.

Parallelly, hub participants need to engage with local communities. Plans must be outlined diligently to conduct consultations and provide attractive compensation when needed. A poor implementation of this requirement can create a bad reputation for key stakeholders and the industry as a whole.

These efforts can be conducted with international organizations and development banks, which could later provide initial investments to make projects bankable. Governments can also help further mitigate risks through grants, availability-based payments, and credit enhancement tools. Government support is also crucial to secure offtake contracts through signing Memorandums of Understanding or dedicating offices to deploy what some call “hydrogen diplomacy.”

While some international and regional examples show the benefits of following a hub-centered strategy, Latin American countries must face crucial challenges to make it work. First, the recent leftist turn in the region may pose some uncertainties about market-aligned policies.

With so much risk and lower margins, governments must prove they can attract and lay appropriate foundations for private investments.

On the other hand, with the broader land requirements for hydrogen projects, companies must show their commitment to building local support and respecting communities and regulations. A clean energy business cannot be developed with old dirty tactics. The potential for the region is evident. Will Latin America be able to work in teams and win this race?

Adalberto Castañeda Vidal is a second-year student of the Master of Public Administration at Columbia University – School of International and Public Affairs concentrating in Energy. He worked as a research assistant for the Center on Global and Energy Policy, where he participated in research projects about hydrogen and natural gas. He is originally from Tabasco, Mexico, and holds a bachelor’s in International Relations from the National Autonomous University of Mexico.

The Cerro Corredor solar complex in the Atacama Desert in northern Chile became the largest photovoltaic plant in operation in Latin America when it was inaugurated on Jun. 8. CREDIT: Cerro Corredor

By Orlando Milesi
SANTIAGO, Jun 15 2021 (IPS)

Chile is in a privileged position in the world to produce green hydrogen and boost the development of the new fuel thanks to the country’s optimal conditions for generating solar and wind energy, but the large investment required and the scarcity of water are two of the biggest obstacles to overcome.

This South American nation’s National Green Hydrogen Strategy aims for Chile to produce the world’s cheapest green hydrogen by 2030, to become a major exporter by 2040 and to reach an electrolysis capacity of five gigawatts (GW) by 2025.

“Our main goal is to become one of the top three exporters of green hydrogen worldwide by 2030, producing approximately 2.5 billion dollars worth each year at the lowest global cost,” said Minister of Energy and Mining Juan Carlos Jobet.

“We are extraordinarily blessed with some of the best solar and wind resources in the world,” he said on Jun. 2, alluding to the heavy solar radiation in the northern Atacama Desert and the strong winds in Patagonia, in the southern Magallanes region.

Chile increased the goal for clean electricity generation to 40 percent by 2030, coinciding with the Jun. 8 inauguration in the northern region of Antofagasta of the Cerro Dominador Complex, which became the largest solar plant in Latin America. A goal in which green hydrogen is beginning to enter the equation.

According to Jobet’s calculations, by 2030 Chile will produce hydrogen at 1.50 dollars per kilo, a price competitive with fossil fuels. The minister forecasts a potential market of 25 billion dollars that same year.

Hydrogen, the most abundant element in the universe, was already used for refining oil, methanol or steel, for example, but was generated from fossil sources, thus contributing to the emission of polluting gases.

Green or renewable hydrogen, on the other hand, is a fuel obtained by electrolysis of water, a process that separates hydrogen from the oxygen contained in water, using electricity from clean sources, such as solar and wind power, so as not to contribute to global warming.

Energy represents 70 percent of the cost of this process, so it is crucial to boost the steady decline of prices of these sources in the country.

Marcelo Mena, a professor at the Catholic University of Valparaíso, former environment minister and member of the government’s Green Hydrogen Advisory Committee, told IPS that the Strategy “is possible, but it requires a change in the way industrial policy is made in Chile.”

“Unlike in history, where ideologies have led governments to say that the market has to choose the winners and not States, I believe that here we have to choose, stake our bets on and seek comparative advantages. Betting on what Chile is in terms of its production,” he said.

Mena argued that “a high level of financing is required in the transition” and gave as an example the subsidies in Germany, equivalent to some 700 million dollars a year, while “what we have put in so far is 50 million.”

“A more robust subsidy is needed, a greater amount of funds because they are emerging technologies that require reducing the risk for investors,” he said.

By way of example, Mena said “a large green hydrogen project, from one to two gigawatts, requires an investment of close to one billion dollars.”

According to Mena, a leading expert in energy transition, green taxes can provide part of these resources.

A mock-up of the Haru Oni plant, which is about to begin construction in the southern Chilean region of Magallanes, where it will take advantage of the abundant wind energy provided by the area’s strong winds. With an investment of 45 million dollars, it will produce ecological methanol based on green hydrogen and the resulting gasoline will be used in conventional vehicles. CREDIT: Siemens Energía

No lack of doubts

Consultant María Isabel González, manager of the company Energética and former executive secretary of the state-owned National Energy Commission, has doubts about the country’s bet on the so-called fuel of the future.

“Producing green hydrogen in Chile is an overly ambitious goal, which is not in line with the circumstances here. Just compare the investments being made in countries like Australia, with projects for more than 27 gigawatts and an investment of 36 billion dollars,” she remarked to IPS."What is needed is a strategic look at what is going to be done with water, waste, citizen participation, transmission, space demands. Everything has to be transparent and discussed with the community. Otherwise, those who could be our promoters may become detractors." -- Marcelo Mena

She also argued that the idea of green hydrogen stood in marked contrast to the energy poverty suffered by half of the population in this country of 17.5 million people, who still have no access to hot water, while thousands of households use firewood for heating.

“Obviously a developing country like Chile should first solve the basic needs of its population and in particular of those most in need,” González argued.

That is why she suggests delaying green hydrogen plans.

Mena agrees that energy poverty is a problem, but believes that the situation can be addressed simultaneously with the production of hydrogen.

“We can promote an industry that generates revenues of around 20 or 30 billion dollars a year and with these higher revenues we can electrify the energy mix by replacing polluting firewood, which is expensive and causes high levels of deforestation,” he said.

Another issue is that generating green hydrogen requires a lot of water. According to González, nine tons to produce one ton of hydrogen. But Chile is facing a major drought that has lasted for more than a decade.

She said “this could be solved with seawater desalination,” but added that “this is not our only disadvantage” and cited the “significant” problem of Chile’s distance from the main markets.

This long and narrow country nestled between the Andes Mountains and the Pacific Ocean can export its products through its Pacific coast ports, ship them up through the Panama Canal or transport them across several South American countries to reach the Atlantic.

Mena believes that “the amount of water required is much less and there are ways to find this water without causing conflict. One is desalination and another is the use of sewage that today is discharged raw into the sea in northern cities.”

The Canela Wind Farm, with wind turbines 112 meters high and an installed capacity of 18.15 megawatts, generates electricity with wind from offshore in the Coquimbo region of northern Chile. CREDIT: Orlando Milesi/IPS

Darío Morales, director of studies for the Chilean Renewable Energy Association (Acera), which represents companies and professionals in the sector, admitted to IPS that water is a challenge that should not be minimised.

But he also mentioned the desalination option and pointed out that “one of the objectives of developing the domestic hydrogen market is to use it to replace fossil fuels, the refining of which also uses significant amounts of water.”

The investment challenge

Morales also noted that the Strategy calls for five billion dollars to be invested in hydrogen development by 2025, “which is an enormous challenge, especially if we consider that this must be accompanied by a major boost for renewable energies.”

He said these clean energies should at least double their current generation capacity.

According to Minister Jobet, Chile has the capacity to generate 70 times more renewable electricity than what it produces today.

Mena said the Strategy includes “investments of over 300 Giga of solar energy. In terms of panels per person, this would be 15 KW of power, equivalent to 40 solar panels for each Chilean.”

He said it was important to submit the plans to a strategic environmental assessment that would allow for consultation on this policy and look at environmental aspects.

“What is needed is a strategic look at what is going to be done with water, waste, citizen participation, transmission, space requirements. Everything has to be transparent and discussed with the community. Otherwise, those who could be our promoters may become detractors,” he said.

He also warned that “today green hydrogen is not competitive.”

“Costs have to come down, like they did with solar energy, whose costs were reduced by 90 percent in a couple of decades,” Mena said.

González noted that “according to the International Energy Agency, one kilo of green hydrogen, which contains about 33.3 kWh, costs between 3.50 and 5.0 euros (each euro is equivalent to 1.22 dollars), which means between 100 euros/MWh and 150 euros/MWh.”

A glimpse of dawn amidst the steam from the geysers of El Tatio, in northern Chile. Geothermal energy is another clean, non-conventional energy, in this case also infinite, which Chile is beginning to harness with the Cerro Pabellón Geothermal Power Plant in the municipality of Ollagüe. CREDIT: Marianela Jarroud/IPS

“To be competitive it should reach around 60 euros/MWh, or around two euros per kilo,” she said.

The Strategy aims for a cost of 1.30 dollars/kg H2 by 2030 and 0.80 cents/kg H2 by 2050. One cost reduction would come from lower electricity prices. Another would come from economies of scale, for which it is essential to develop domestic demand.

To reach this goal, “policies for the development of specialised suppliers and local technological development should be promoted. If any of these pillars fail, it will be difficult to achieve the expected cost reductions,” said Mena.

Eduardo Bitran, designated as one of 20 ambassadors of green hydrogen by the government of Sebastián Piñera, said the domestic market is led by the mining industry. “Moving towards green mining is a starting point,” he said. This would be followed by use in long-distance heavy-duty transport and passenger transport.

He said the coronavirus pandemic “has made us realise the extent of global interdependence.”

“The great post-pandemic threat is climate change. This is the last decade to prevent the planet’s temperature from rising more than two degrees Celsius,” he said at a meeting of the Innovation Club, which he chairs.

Countries with productive potential and other consumers agreed to join forces to turn hydrogen into an alternative to fossil fuels, during an international meeting organised in Santiago in preparation for the 26th Conference of the Parties (COP26) on climate change, to be held in Glasgow, Scotland in November.

Australia, Chile, the United Kingdom and the European Union will seek to make green hydrogen affordable and competitive, they agreed at a virtual meeting on Jun. 3.

Minister Jobet stated that “what we have to do as a planet to use this hydrogen at an accelerated rate is to reduce its cost, because it is still more expensive to produce, transport and store than its oil or gas alternatives.”

The Providencia Solar company, El Salvador. Latin America counts some of the globe’s most abundant and cost competitive renewable energy resources including hydroelectricity, solar, and wind. Credit: Edgardo Ayala / IPS

By Cecilia Aguillon
LA JOLLA, California, Jun 22 2020 (IPS)

The COVID-19 pandemic and crisis has led to increasing attention and clamor to redouble efforts toward an energy transition that would help the world reduce C02 emissions. In many countries of the region, how to manage hydrocarbons, but with an eye on the energy transition has only been accentuated. We believe clean hydrogen is part of that broader policy and reconstruction debate.

Clean hydrogen markets can be a key part of the economic recovery from the COVID-19 pandemic, accelerate the decarbonization of Latin America’s electricity and transportation sectors, attract investment and create jobs. Indeed, the possibilities for oil and gas companies to produce and deliver hydrogen should facilitate and accelerate its adoption in Latin America particularly when combined with the region’s considerable renewable energy upside.

As the US Energy Information Administration notes, hydrogen is the most abundant element on the planet and the simplest. Furthermore, the EIA underscores that “hydrogen, like electricity, is an energy carrier that must be produced from another substance.”

Clean energy policies with clear objectives and successful implementation have resulted in renewable auctions that were over-subscribed throughout the region. The policies also engendered competition and electricity prices among the lowest in the world all the while injecting billions of dollars of direct investment into their economies

According to the US Department of Energy, most hydrogen today is produced from fossil fuels, specifically natural gas, but there is also increasing production from electricity including renewable sources such as biomass, geothermal, solar, and wind.

With regards to technology, most hydrogen is produced through steam methane reforming, a high-temperature process in which steam reacts with a hydrocarbon fuel to produce hydrogen. Electrolysis is also commonly used to produce hydrogen by separating H2O into oxygen and hydrogen. Hydrogen can be compressed, liquefied, transported and used at gasoline stations to fuel vehicles.

Latin America counts some of the globe’s most abundant and cost competitive renewable energy resources including hydroelectricity, solar, and wind. The elements that make the region a world-leader in renewables can facilitate a similar ascension for clean hydrogen production this decade. But it is important to note that in order to spur investment, economies of scale must be supported and enhanced through policy and market incentive programs.

Take the photovoltaic (PV) industry. PV has demonstrated that policies with a well-conceived implementation strategy greatly incentivizes the market and leverages steep cost reductions. Average PV prices in the United States dropped 89% from $359 USD per MWH in 2009 to $40 USD per MWH in 2019.

Over the last ten years, most countries in Latin America enacted clean energy targets and laws that include fiscal incentives and goals to achieve a determined percentage of their electricity mix from clean energy sources by specific timeframes. Using a reverse auction mechanism, solicitations were announced attracting bids from mostly wind and solar developers. A major energy auction in Mexico in 2017 delivered prices in the $20´s USD per MWH.

Clean energy policies with clear objectives and successful implementation have resulted in renewable auctions that were over-subscribed throughout the region. The policies also engendered competition and electricity prices among the lowest in the world all the while injecting billions of dollars of direct investment into their economies.

Latin America’s power sector is well-positioned to be the main driver for a clean hydrogen boom as the pace of solar and wind energy projects continues to accelerate. In some cases, their intermittent nature, however, creates mismatches in the supply and demand of electricity in the system which prompts grid operators to temporarily shut down generation when it exceeds demand.

This reduces return on investments. Reliable and cost-effective batteries are needed to address the problem. Hydrogen-based storage is emerging as a technically viable and effective solution, but more has to be done to foster a competitive industry.

According to IRENA´s latest report on hydrogen and renewables, the lowest average cost of producing hydrogen from wind is $23 USD per MWH. There is consensus that reducing the cost of storage will help maximize the use of renewable energy generation, reduce energy imports, and contribute to economic prosperity.

There are natural allies in this effort. Policymakers and regulators together with power companies and renewable energy investors are increasingly aligned with similar objectives and goals. Latin America does not have to start from scratch; there are important lessons from around the globe.

Clean hydrogen projects being developed in Asia, Europe, and the United States could lead to policies, programs, and robust industries. Lessons learned and best practices from early adopters can be harvested and adapted to develop successful hydrogen markets.

In Latin America, Chile could emerge as the clean hydrogen market leader since the country has surplus production of solar and wind electricity that could be leveraged for producing hydrogen. The government is already developing its post-pandemic stimulus package with a heavy focus on energy decarbonization by 2040 backed by aggressive policies targeting growth and further deployment of renewable energy and electric mobility.

The Energy Ministry is even working on a specific plan to develop a hydrogen market. In addition, the Chilean government is enlisting the participation of its power and energy sectors to join the effort. Chile´s success with solar and wind deployment along with its new decarbonization strategy can be a template for developing sustainable and robust hydrogen markets throughout the region.

For many countries in Latin America, one of the thorniest challenges to reduce emissions is in their transportation sector. Even highly-touted renewable energy markets such as Costa Rica have struggled to reduce fossil fuel consumption for transport. Hydrogen offers an important possible solution. Indeed, hydrogen can help decarbonize the fuel sector, most likely as a source for heavy duty transportation such as long-haul buses and trucks, trains, ships, and airplanes.

The current environment of low oil prices is providing many countries relief from onerous fuel subsidies. Indeed, in some markets such as Ecuador have begun to remove them entirely. It could be wise to consider applying some of these savings to promote the modernization of their public transportation infrastructure to accommodate the use of clean fuels and by extension, support economic development and reduction of CO2 emissions.

Moreover, national oil companies have had to shut down refineries due to the recent drop in fuel demand caused by the lockdowns in the fight to manage the COVID-19 pandemic. This forced shutdown could provide an opportunity to use the time to retrofit equipment and train workers on hydrogen fuel production.

Taking such measures in the near-term would allow for an important step towards diversification while transitioning to clean fuels. In some cases, oil and gas companies are able to obtain low-cost financing in addition to having the infrastructure, distribution channels, and know-how to produce fuels. As countries emerge from the pandemic and review policies and stimulus packages to reactivate their economies, governments should further consider designing road maps that include the promotion of clean hydrogen to decarbonize their power and transportation sectors.

Uruguay provides an example that public-private partnerships can work towards developing a local hydrogen market and one that can inform neighboring countries. The national oil company, ANCAP, together with the government, the national electricity company UTE, the Inter-American Development Bank (IDB) and private investors are developing a pilot project to produce hydrogen using renewable energy to power trucks and buses, and to support green electricity through storage. This is to comply with the government´s goal of achieving 100% renewables by 2030.

In Uruguay, a comprehensive roadmap was enacted in 2010 with clear objectives and specific milestones that includes active collaboration of the various public agencies with specific roles to play to achieve the target. The policy also calls for regulations and standards that promotes the use of renewables throughout every sector of the economy making Uruguay a renewable energy leader in the southern cone. The inclusion of traditional energy sectors in the hydrogen pilot project could help the country achieve its decarbonization goal ahead of schedule.

As the example from Uruguay underscores, well-crafted policies and successful implementation of regulations are essential to attract foreign and domestic investments. The technology and resources to produce clean hydrogen are available. Scaling manufacturing to achieve cost-effectiveness is already taking place thanks to programs to promote hydrogen throughout the world.

The current investment profile and soaring amounts for renewable energy has shown the myriad actors and players – from Wall Street and private equity to multilateral agencies to local and international banks – willing to invest in renewable technologies particularly shown by the scale of deployment levels of wind and solar. Furthermore, the potential ability of oil and gas companies to produce and deliver hydrogen should facilitate and accelerate its adoption in Latin America.

Governments throughout the region should also consider direct participation in the clean hydrogen market. By serving as customers, governments can further support and develop critical mass for fast adoption through investment and modernization of state-own transportation infrastructure. Moreover, governments should consider fiscal incentives for heavy industry and traditional fuel suppliers to adopt the technology. Lessons learned from developing successful renewable energy programs should inspire political will to make clean hydrogen the next link in the chain to achieve zero carbon economies for this generation across Latin America.

Navigating the path forward from the COVID-19 pandemic coupled with the persistent threat of climate change makes clean hydrogen a possible solution for the day after and the region’s energy and economic recovery.

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